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Agent Hit with £12,000 Fine After Failing to Make Repairs

Published On: September 7, 2015 at 1:21 pm

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A letting agent has been billed over £12,000 after being convicted of failing to conduct repairs and maintenance work on a property let out to seven students.

IPS (Leicester) initially denied being the managing agent, stating that it simply collected rent.

Agent Hit with £12,000 Fine After Failing to Make Repairs

Agent Hit with £12,000 Fine After Failing to Make Repairs

IPS charges flat fees for sales and offers three packages for landlords – let-only, rent collection and guaranteed rent, by which landlords let their properties to IPS for three to five years for an agreed monthly rent.

IPS pleaded not guilty to seven charges relating to the student House in Multiple Occupation (HMO).

However, after a two-day hearing brought by Leicester City Council, IPS was fined £750 per charge, plus £7,000 in costs and a £75 victim surcharge.

The council’s Nicki Agalamanyi says that IPS was the managing agent for the house, taking 10% of the rent collected and responsible for dealing with repairs and maintenance.

She said the house had a damaged fire door, a faulty lock on the front door, one non-working shower and another that was blocked, and cracked window frames that let water in.

She claims: “Despite the complaints to the company, nothing was done.”

The council sent photographic evidence to the agent and the landlord, Dr Obas Ebohon, who was subsequently fined for not having an HMO license.

Of IPS’s claim that it was not the managing agent for the property, Agalamanyi says: “It is rather strange that [Dr Ebohon] should agree to pay a company 10% just to collect rents and nothing else – no management involved.”1

Two tenants were told to notify IPS if any repairs or maintenance were required.

1 http://www.propertyindustryeye.com/agent-which-said-it-only-collected-rent-hit-with-12000-bill-after-prosecution-over-repairs/

First-time buyer optimism in Europe low

Published On: September 7, 2015 at 12:58 pm

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A large survey of more than 15,000 people from over 15 countries has indicated that first-time buyers in the UK are faced with some of the most difficult conditions in Europe, when trying to get onto the first-rung of the property ladder.

In addition, the survey revealed that Europe as a whole is becoming more pessimistic about the chances of first-time purchasers, with a majority believing than the housing crisis is becoming more acute.

Bullish

The investigation found that 56% of people in Europe are bullish about the possibility of property prices rising in the coming year. However, 79% of Europeans acknowledge that is becoming harder to purchase an initial home.[1]

British first-time buyers were found to have the toughest task of making it onto the ladder, with 89% questioning just how they will be able to buy a property. Data from the report shows that house prices rose by an average of 8% in the UK between Q1 of 2014 to 2015, eight times more than the European average.[1]

88% of people in Spain and 87% in Belgium are also worried about entering the housing market. Spain is still recording high levels of unemployment, while in Belgium, tougher lending conditions and a lack of wage growth are thought to be reasons for the lack of optimism.[1]

Germany was found to be the country that was least concerned about the conditions facing first-time buyers, but 59% still replied that it is getting harder to get into the property market.[1]

Affordability concerns

Concern for first-time buyers is being driven by the widening affordability gap, with 72% of European renters believing that society would benefit from a fall in house prices. This was found to be most common in renters, with 93% of tenants in Spain, 75% in Britain and 74% in France believing that soaring housing prices are the main cause to their struggle for home ownership.[1]

First-time buyer optimism in Europe low

First-time buyer optimism in Europe low

69% of European home-owners also agreed that a fall in property prices would be a real benefit. In Turkey, where prices rose sharply over the last twelve months, 90% of homeowners believed this would be the case. In Spain, where property prices have fallen by over 25% in the last five years, 83% of homeowners still feel a further drop would be beneficial.[1]

However, just 47% of German homeowners feel that a reduction in property prices would be beneficial. It must be taken into account that homeownership in the country is the lowest in the European Union at 43%.[1]

Struggles

Across the continent and in the US and Australia, consumers hold the view the first-time buyers are at risk of having the door to home ownership slammed in their face,’ said Ian Bright, Senior Economist at ING. ‘Even homeowners would consider it a good thing if house prices fell, which may indicate people are not only worried about the high level of house prices, but also realise that house prices cannot keep rising forever.’[1]

‘The burgeoning economic recovery across the continent comes into play here. This will improve people’s lives in many ways but the ING International Survey shows something needs to be done if the next generation is to benefit from bricks and mortar,’ Bright added.[1]

 

[1] http://www.propertyreporter.co.uk/property/uk-ftb-sentiment-lowest-in-europe.html

 

First Time Buyers Won’t Sacrifice Luxuries to Buy a Home

Published On: September 7, 2015 at 12:18 pm

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First time buyers are not prepared to sacrifice certain luxuries in order to save a deposit and buy a home, according to recent research.

In a survey of 1,000 people in England and Wales saving for their first house, by Welsh building society Principality, many said that smartphones, satellite TV and holidays are all things they are unwilling to give up.

First Time Buyers Won't Sacrifice Luxuries to Buy a Home

First Time Buyers Won’t Sacrifice Luxuries to Buy a Home

The average asking price of a starter home in the UK is currently £169,414 and the building society calculates that if a couple saves £353 each every month, they could save a 5% deposit of £8,470 in just a year.

The study found that although aspiring first time buyers save an average of £286 per month for a deposit, they are still spending around £218 on what they call necessities.

Less than half of respondents (42%) would be willing to sacrifice satellite TV, just 37% would give up beauty treatments and just over one in ten (12%) said they are prepared to give up their smartphone.

Over half (56%) would not give up regular holidays in a bid to save more money.

However, almost two thirds (59%) said they will give up takeaways and 48% would stop eating out and using taxis. If respondents gave up all three, research indicates that they could save an extra £62.41 per month.

Customer Director at Principality, Julie-Ann Haines, comments on the findings: “We know that saving for a deposit can seem like a huge burden, which many first time buyers feel they can’t afford, but by making some minor changes to their spending habits, they could soon realise their dream of becoming a homeowner.

“By simply doing things like swapping a takeaway coffee for a flask of coffee from home each day, or by cutting back on the city breaks for a year, people could soon have that deposit they have longed for. A saving of £218.38 a month can make a huge difference when you are trying to reach your deposit.”

She continues: “[Getting on the property ladder] can be one of the most rewarding moments of your life, giving you a place where you can seek the independence you’ve always wanted or finally start a family.

“By simply cutting back on the everyday luxuries for a short time, it will enable you to save more in the long run, and ultimately be on the housing ladder much sooner than anticipated.”1

1 http://www.propertyindustryeye.com/first-time-buyers-wont-sacrifice-smartphones-spas-and-holidays-to-get-on-housing-ladder/

North East homeowners better off than renters

Published On: September 7, 2015 at 11:45 am

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Homeowners in the North East who own their own homes are better off than those than rent in the region, according to new figures.

Data released by the Halifax show that homeowners in the area are £61 per month better off than renters, with the region going out national trends.

Gaps

According to the figures, the average North Easterner spends £520 a month to rent a house, in comparison to £459 for those who own one. This represents a difference of 12%.[1]

Only Scotland, the South West and London recorded larger differences within the UK. Just one year ago, the difference was just £8 per month, a difference of only 2%.[1]

In Britain, first-time buyers’ advantage over renters has slowed during the last 12 months. Summer 2014 saw renters paying £1018 on average more than buyers. Now, this figure is down to £670.[1]

Separate research from the Guardian has also shown the North East to be the most affordable place to live in Britain The report shows that Londoners spend an average of 12.2 times their income on property, in comparison to just 6.1 times in the North East.[1]

North East homeowners better off than renters

North East homeowners better off than renters

Hidden truths?

Ajay Jagota, of North East sales and lettings firm KIS, believes the figures do not tell the entire story. Jagota said that, ‘the North East is historically the most inexpensive place to buy a house in the UK-and this research shows it to be the most affordable too. Because of this, buying has always been comparatively cost-effective compared to renting. When you add to that recent developments like reductions in Stamp Tax, low mortgage rates and the government’s Help to Buy scheme lowering the cost of deposits, it’s really no surprise at all to see the cost of buying a property falling.’[1]

‘These figures don’t take away from the fact that the North East is undoubtedly the most cost-effective place to both buy and rent in the UK. Halifax’s research shows that North East buying costs are 32% below the national average, and renting costs 28% lower.There’s no reason at all to be put off renting. KIS research has shown that North East rents have remained the same for almost 18 months. House prices meanwhile have risen by over 5% in the last two months. Then of course there’s the unexpected costs of home ownership these figures don’t include – broken down boilers, insurance, you name it.’[1]

Mr Jagota concluded by saying, ‘when charities like Shelter talk about 17,000 tenants being bullied by their landlords, they forget to mention that that’s out of an overall total of over 9,000,000 renters.  Renting isn’t just the right choice for many people, it’s can be a very cost-effective one too.’[1]

[1] http://www.propertyreporter.co.uk/landlords/north-east-homeowners-61-a-month-better-off-than-renters.html

 

 

Connells Expands Surveying Team Due to Concerns over Valuation Delays

Published On: September 7, 2015 at 11:16 am

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Connells Group is spending £5m on expanding its team of chartered surveyors due to concerns over valuation delays.

Connells Expands Surveying Team Due to Concerns over Valuation Delays

Connells Expands Surveying Team Due to Concerns over Valuation Delays

The venture will include growing the surveyors’ support team, following a £6m investment 20 months ago by Connells Survey & Valuation.

Managing Director, Ross Bowen, states: “We are acutely aware that our clients need to have robust valuation service arrangements to rely upon.

“This investment will result in extending our surveying team by a further 50 dedicated surveyors, directly benefitting our clients as they seek to deliver their own growth plans in an increasingly competitive marketplace.”

The new investment arrives as concern regarding a shortage of residential chartered surveyors, especially in busy areas such as the South East, continues to grow, causing delays in valuations and surveys being conducted.

Bowen continues: “Higher consumer confidence, the improving domestic economy and political stability following the general election result, all point to increasing property transaction and lending levels over the coming years.

“Connells Survey & Valuation is focused on ensuring it plays a sustainable role in the sector to support this.”1

Jonathan Westhoff, the Chief Executive of the West Bromwich Building Society, which transferred its staff valuers to Connells in 2000 when it first outsourced its valuation panel management, says: “We welcome the announcement that Connells is investing further in its valuation services, which form an important part of what we can offer borrowers looking to purchase their own homes.

“In what is a highly competitive market, it is vital that a lender’s overall quality of service matches the quality of its mortgage products, and Connells is a key strategic partner to help us deliver this for our members.”1

1 http://www.propertyindustryeye.com/connells-invest-5m-on-beefing-up-surveying-team-amid-concern-on-valuation-delays/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Letting agency in Leicester fined

Published On: September 7, 2015 at 10:42 am

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With the new academic year upon us, a letting agency has been told to pay in excess of £12,000 in fines and court costs after being found guilty of seven charges of failing to carry out repairs to a student property.

Leicester City magistrates found IPS Ltd guilty of failing to adhere to regulations relating to a property in the Highfields area of the city, which was occupied by seven people.

Charges

The Leicester Mercury says that the firm was fined £750 for each individual charge, in addition to £7,000 costs and a £75 victim surcharge. Over a two-day hearing, IPS Ltd pleaded not guilty to all charges.

Lawyers for the local council argued that IPS was the managing agent for the property and took 10% of the rent accrued per month. In addition, the council said that the firm was responsible for dealing with maintenance and repairs.

Some of the main causes of concern highlighted by the tenants included a damaged fire door, stained, damp and cracked plaster, a faulty lock, broken extractor fan and faults with showers and a broken bedroom door.

Letting agency in Leicester fined

Letting agency in Leicester fined

Involvement

Leicester City Council got involved in February and March of 2014, taking photographs of the problem areas, alongside distributing letters to the company and the owner of the house.

‘The landlord did get the work done, but IPS denied they were in management-they said they were just rent collectors,’ a lawyer acting on behalf of the council told the court.

In addition to being £1,500 for failing to apply for a multiple occupation licence , the landlord was fined £500 for failing to show his contact information in his property.

Two of the tenants residing in the property said when the moved into the house than they were told they should notify IPS (Leicester) Ltd should any repairs or maintenance be required. This claim was denied in court by one of the company’s representatives.